IFC’s Agreement with Core Carbon Group ApS Will Reduce Greenhouse Gas Emissions in Russia
IFC, a member of the World Bank Group, and Core Carbon Group ApS today signed an agreement to help reduce emissions of nitrous oxide, a greenhouse gas, by fertilizer producers in Russia. The agreement for 2 to 3 million emission reduction units falls under the Netherlands European Carbon Facility, a joint facility of the World Bank Group and the Dutch government. Under the agreement, IFC will use the Dutch government’s funds to purchase emission reductions from Core Carbon Group ApS.
In accordance with the Joint Implementation Mechanism of the Kyoto Protocol, the Dutch government will use the emission reductions to comply with its commitment. The mechanism allows a country with a Kyoto Protocol emission reduction commitment to meet part of its target by carrying out a project to reduce greenhouse gas emissions in another country.
Core Carbon Group ApS works with fertilizer producers to abate nitrous oxide emissions at their nitric acid production facilities. According to the agreement with IFC, the company, which functions as developer and investor, will deliver emission reduction units to be generated in Russia, where the law does not require such abatement. Nitrous oxide has a global warming potential of about 310 times more than that of carbon dioxide.
William Shor, CEO, Core Carbon Group ApS, said, “We are pleased to conclude this transaction with the Netherlands European Carbon Facility. It shows that with proper attention and care, the quality in developing and documenting Russia’s Joint Implementation projects can meet the highest international standards.”
Rachel Kyte, IFC Director for Environmental and Social Development, said, “Through this partnership, we will be supporting one of the first nitric acid plants in Russia to abate its greenhouse gases. We hope it will provide a demonstration effect for other producers of nitrogenous fertilizer in the country.”
IFC manages two carbon purchase facilities and offers several financial products, including an AAA-rated carbon delivery guarantee for projects that generate emissions reductions as well as loans against emissions reduction purchase agreements from creditworthy counterparties. For more information on IFC’s carbon finance offerings, visit www.ifc.org/carbonfinance.
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